PROFITABLE GROWING AUSTRALIAN IT MANAGED SERVICE PROVIDER

Looking for a buyer.
Project Kernel
Kernel - a leading Australian MSP Provider. Kernel is one of Testra's leading IT managed providers of mid-market and government clients. They provide vendor agnostic solutions while partnering with top tier hardware and software vendors, to offer hybrid managed service solutions to clients. Founded in August 2013, Kernel now has 90 employees and offices in Sydney, Melbourne, Canberra and Brisbane.

Key Highlights
- Strong financials. Revenue $52M for 2021, ARR $20M, EBITDA $10M. Revenue projection to hit $58M in 12 months. The last 3 years have shown 100% year on year growth in both revenue and EBITDA.

- Long term contracts. Average contract is between 3 to 7 years.
- Low staff turnover. 50% of staff has been with the business over 10 years.
- Proven management team. They are happy to stay on if needed by the new owner.
- Proven M&A turnaround expertise. Management has turned break-even and loss making IT and telecom businesses to profit centres, once acquired and fully-integrated operationally into Kernel business models.
- Opportunity to leverage Telstra’s growth. As one of Telstra’s larger business partners Kernel is in the unique position to take advantage of Telstra’s strategic decision to move revenue from its direct model (80% of Telstra’s revenue) to an indirect model. Currently, Telstra conducts $1.5bn through the channel; by 2030 this is expected to grow to over $6Bn.

In a similar manner, Kernel’s Gold Partner status with Microsoft, VMware, and Cisco will also prove prosperous.
- Unique niche solution capabilities. The correctional services, healthcare and unified communications vertices are areas where Kernel has demonstrated client acquisition and retention and continues to see strong organic growth opportunities.
- Bolster growth with IP acquisitions in key solution areas. Currently, Kernel is courting 4 smaller acquisitions to leverage to its client base.
- Proven management experience in the ability to integrate acquisitions into the business and turnaround loss-making Telco/IT businesses into profitable profit centers due to business model

listing type
exclusive representation
industry
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location
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revenue
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ebitda
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proposed price
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